RBI asks banks to reimburse failed ATM transactions in 7 days

Beginning July 1, if your bank fails to reimburse you for an amount debited wrongfully from your account in case of failed ATM transactions within 7 days of your complaint, you will not only get your money but a compensation at the rate of Rs 100 per day from the bank.

The Reserve Bank of India on Friday directed banks to reduce the reimbursement period, for amounts wrongfully debited from their accounts in failed ATM transactions, to seven days as against 12 days earlier.

"The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days to seven working days from the date of receipt of customer complaint," said the RBI in a notification. "Failure to re-credit the amount within seven working days will require the issuing bank to pay a compensation of Rs 100 per day."

However the customers will be required to lodge their complaint with their bank within 30 days of transaction to be eligible for such compensation.

In order to reduce dispute in payment compensation between the issuing and acquiring bank, the central bank also instructed that the issuing and acquiring bank will have to settle failed ATM transaction disputes through the ATM system provider only.